As you may be aware some countries have specific legislation that regulate the way parties must conduct themselves and their businesses when involved in a franchising. In other regions, there are no regulations and general applicable laws will apply to the relationship between a franchisor and franchisee.

In Australia, we have a regulation governed by the Competition and Consumer Act, known as the Franchising Code of Conduct which came into place in 1998 and has subsequently had a number of updates. This regulation predominately requires a franchisor to provide disclosure to a prospective franchisee in order to allow the franchisee to make a well-informed decision. Along with a number of other obligations it is obligatory in Australia to comply with the Code.

So long as you have the right policies and procedures in place, dealing with the Code and operating a successful franchise network in Australia should not be difficult.

You will need to engage a specialist franchise lawyer to prepare the required documents, particularly a franchise agreement and disclosure document before you go to market. In addition, it would be prudent to ensure you obtain the necessary advice to establish your corporate structure, protect your brand and understand and be aware of any other state or federal legislation that may apply to the product or service you are offering the market.